Asked by Natalia Portugal on Jul 02, 2024
Verified
The Freestanding Company Limited is the owner of a number of commercial buildings in a large Ontario city. One of the directors, Denise, suggested that the corporation purchase a large apartment building. Another director, Zaida, was the owner of a one-third interest in the building. If the corporation must sell securities to the public to raise the capital, a prospectus must be prepared and approved by the Ontario Securities Commission before a sale of securities may be made.
Prospectus
A detailed document provided by a company to potential investors, outlining the company's financial health, operations, and investment risks.
Ontario Securities Commission
The regulatory body responsible for overseeing the capital markets in Ontario, Canada.
Securities Sale
The process of selling financial instruments such as stocks, bonds, or options in a financial market.
- Acknowledge the intricate details of corporate financing and the laws governing securities.
Verified Answer
EB
Emmanuel Bernier7 days ago
Final Answer :
True
Explanation :
In Ontario, if a corporation wishes to sell securities to the public to raise capital, it is required to prepare a prospectus and have it approved by the Ontario Securities Commission, as per the Ontario Securities Act. This ensures that all potential investors have access to essential information about the investment.
Learning Objectives
- Acknowledge the intricate details of corporate financing and the laws governing securities.